1 Valley Schools Management Group Update Michael E. Finn, Chief Financial Officer

2 Valley Schools Management Group Year end net assets of $1.31M Slightly higher than budget (1.2%) Recent Board Meeting Summary – Investment updates from Sage Advisory Group – Short term return on investment of 2.34%

Valley Schools Insurance Trust (VSIT) Year end trust net assets of $16.33M – PUSD year end net assets of $6.06M – Contributions total of $1.43M – Operating expenses total of $2.7M Recent Board Meeting Summary – Overview of year end performance – Recommendations to minimize risk

Valley Schools Workers Compensation Pool (VSWCP) Year end pool assets of $10.61M – PUSD ending net assets of $1.98M – Contributions total of $1.03M – Operating expenses total of $1.38M Recent Board Meeting Summary – Overview of year end performance – Recommendations to minimize risk

Valley Schools Employee Benefit Trust (VSEBT) Year end trust net assets of $55.33M – PUSD year end net assets of $1.96M – Contributions total of $26.32M – Operating expenses total of $24.4M First quarter 2012 trending poorly